What is AR Funding?

Does the thought of not making payroll keep you up at night? Running a small business is tough! This is especially true when you have to rely on your clients paying their invoices on time to pay. Many businesses face this challenge so you should not feel like you are alone in this. This is where AR funding can come in handy.

When you have a lot of outstanding invoices with your clients and have a major business expense that is coming up, you have the option to leverage an AR funding provider to cover the cost. This process involves selling off your unpaid invoices to the provider. The business will then quote you how much they are willing to pay you in exchange for the full value of the invoice. The amount of time left for the client to pay, the likelihood the client will pay the invoice, and the full value of the invoice will all determine how much you will be given by the provider.

An important thing to consider when choosing an AR funding provider is the fact that you are giving up a portion of your profits in exchange for cash fast. Ask yourself how fast you need the funding and how likely you feel the client will repay you on time? Do you need the cash before the time the invoice is due? Then you should consider AR funding for your business.

What other options exist for funding fast?

AR funding is the not the only option out there that can get you access to cash quickly. You should also consider another option before selling your unpaid invoices at a discount plus additional fees. The options we are referring to is a merchant cash advance.

What is nice about a merchant cash advance, unlike AR funding is you are not giving up a portion of your unpaid invoices to get the cash fast. Instead, you will pay a fixed daily percentage of your credit card sales until the amount of the advance has been paid back in full. Think about it this way, if you have a slow month you will still pay the same fixed percentage vs. a flat amount. Many businesses like this option because they don’t have to be worried about making a fixed payment each month even when they don’t have the cash.

How does a merchant cash advance work?

Apply online through our simple online form!
We will get back to you in less than 24 hours letting you know if you have been approved or denied.
1. We accept 90% of the business that meet our minimum requirements.
After you have been approved and accepted our offer, we can get you the cash you need in just three short business days.
You can then start spending the funding you need to, in order to get your business back on track. That means if you need to make payroll, you can pay your employees just three days after getting approved.

What are the requirements to qualifying for a merchant cash advance?

You have been operating as a business for at least six months.
Your business generates at least $10,000 a month in revenue.

What type of businesses should use a merchant cash advance?

If you are considering leveraging AR funding or a merchant cash advance considering the following:

Do you do a majority of your transactions via credit cards?
Do you need access to funding fast?
Are you in the construction industry, own a dental practice, or in the retail industry?

All of these are reasons to consider using a merchant cash advance. If you still have questions, we are here to help answer them!